Sure enough, in just a few days, Erpi secured a loan of 50 million yuan and also obtained land to build a new factory.
According to Tianjin's wishes, the goal is for Ruyang Foods to take root in Tianjin, grow bigger and stronger, and become a leading enterprise.
Su Wu was naturally pleased with this outcome.
There's no way around it; being responsible for 100 million US dollars is a huge pressure.
"Brother Erpi, the equipment has almost all arrived. How's our scale going? Do we need any more equipment?"
"No need. Our assets are already over 100 million, we need time to digest them."
Upon hearing this, Erpi couldn't help but let out a wry smile.
He has not yet had a detailed conversation with Su Wu after returning.
After traveling around China, he gained a more intuitive understanding of the beverage market and the prospects of Coca-Cola.
After organizing his thoughts, he began to analyze.
"We are currently mainly targeting first- and second-tier markets. We estimate that by next year we will be able to capture about one-fifth of the market share, and that's after we've been skirting the edges of Coca-Cola."
"I have to say we were too optimistic. Imported goods are imported goods. They are still well-received in big cities, and our sales are starting to decline now."
"The company has calculated that, based on this calculation, we can sell about 300 million bottles a year, with a profit of about 300 million. After deducting construction costs and other expenses, we can make a profit of more than 100 million."
Such performance is actually quite remarkable.
However, compared to their current production capacity, it is somewhat insufficient.
Given their current scale, they can produce at least 1 billion bottles of beverages a year.
This is clearly a waste of production capacity.
However, in order to save on transportation costs and geographical coverage, they had no choice but to do so.
Now that Erpi has a broader perspective, he is clearly not very satisfied with this result.
As for Su Wu, he was even more dissatisfied.
At this rate, when will we be able to raise a hundred million US dollars for him?
He's run out of ways to make extra money now and is completely relying on the beverage company for financial support.
After thinking for a moment, he said to Erpi, "We can't limit our vision to big cities. We need to expand into lower-tier cities and focus on those below the third tier."
"In third-tier cities and below? A drink that costs 3 yuan a bottle, even a canned one costs 2 yuan, would anyone drink that?"
Erpi expressed his doubts, after all, he had never actually investigated cities below the third tier.
Seeing how out of touch with reality he was, Su Wu felt a pang of sympathy.
While first- and second-tier cities may have higher consumption levels, in terms of population size, the combined population of third-tier and lower-tier cities is enormous.
With a larger base, sales will naturally increase.
While major beverage companies haven't yet launched their offensives into lower-tier markets, this is the perfect opportunity for them to seize market share.
Su Wu had to remind him: "The great man said that we should surround the cities from the countryside. How many people are in big cities? How many people are in third-tier cities and below? Even if there is only one consumer out of every hundred people, we can still make a lot of money."
This is not just empty talk, but a fact.
It's worth noting that Coca-Cola's sales in China are only a few billion bottles.
But what about the future? It could reach a terrifying number of hundreds or even trillions of bottles.
While improved economic conditions are certainly a factor, the key factor is market penetration into lower-tier cities, which has boosted sales.
In just a few years, they will realize this and will soon cover prefecture-level cities, counties, and even rural areas.
These are the main markets for beverage consumption because of their large population.
After all, there are only a few big cities. They may look huge, but when you add them all together, they're not enough.
After Su Wu patiently explained, Erpi finally understood.
This is a process of accumulating small profits to achieve larger sales volumes, which will continuously increase total revenue.
Moreover, with their first-mover advantage, their products can definitely occupy a large market share.
Thinking of all this, he nodded emphatically.
“You’re right, I’ll arrange for people to go around promoting it. But that’s not enough, we need to build more factories.”
Having enlightened him, Su Wu nodded in satisfaction and offered another new idea.
"This is only one aspect; we also need to add new beverage categories to increase market share."
"You mentioned this before, and I've sent people to look for it, but it's not easy. Some folk recipes require research and development funding to be turned into beverages."
Erpi touched his face with a slight pang of regret, somewhat reluctant to commit.
Su Wu neither confirmed nor denied this, but said seriously, "This is an inevitable process, and investment in research and development is essential. I'll give you some ideas, such as rock sugar pear soup, black tea, herbal tea, plum juice, fruit juice drinks..."
After thinking for a moment, he added, "I'll also try to use some connections to get some beverage formulas from abroad, which should come in handy."
While chatting with Erpi, Su Wu's thoughts suddenly became clear.
He was so focused on selling the formula that he forgot he could also buy it.
It really is a case of the blind spot being right under one's nose.
There are many corporate spies on the dark web, selling all kinds of intelligence.
Although none of these are particularly important documents, they're enough to make a few beverage recipes.
He didn't expect these formulas to be particularly powerful, he just wanted them to be usable.
The beverage market in China right now has so many untapped markets, enough for him to mess around with.
The phone started ringing as soon as Erpi turned it on.
It was clearly another invitation from a boss, and he had no choice but to accept.
After he left, Su Wu immediately logged into the dark web with a brand new ID.
This time, he posted a very low-key request to purchase various beverage formulas.
At the same time, he also sent a message to Meikuzi, hoping that she could help him as well.
In an instant, his roles reversed; he went from seller to buyer.
It must be said that Japan has a wide variety of beverages, such as the famous Ito En, Suntory, and Ramune.
Obtaining a complete beverage recipe is unrealistic, but getting some approximate recipes is still possible.
In particular, Japan's tea culture is highly developed, with a wide variety of types including green tea, black tea, and oolong tea, and the techniques used are very advanced.
Instead of slowly researching it myself, I might as well get some recipes and then make pirated copies.
Su Wu thought this way because he was also considering the problems of the present era.
While intellectual property and patent protection have begun to receive attention abroad, their effectiveness is still limited.
Compared to a few years from now, there are still many loopholes to exploit.
Even if he manages to obtain the formula in a few years, he may not be able to produce and market it.
Sure enough, after receiving the news, Meikuzi immediately gave her a guarantee.
She can't get the formulas from large companies, but she can get the formulas from some small companies and workshops.
Yamaguchi-kai is no joke; they really have that much capability.
This was more than enough for Su Wu, enough to fill the gap in the domestic market.
As long as it doesn't taste bad, it will have an absolute market in China.
The only thing to consider now is the price of these formulas.
He really has no money left, and he can't afford to invest any more.
Therefore, the remaining expenses can only be covered by Ruyang Company's own revenue.
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